5 reasons why Trump’s World Liberty Financial token crashed

Learn the 5 key reasons why Trump’s World Liberty Financial token crashed, including strict buying restrictions, non-transferability, and website failures.

Trump’s WLFI Token Struggles with Sales
On October 16, 2024, former U.S. President Donald Trump launched his much-anticipated World Liberty Financial (WLFI) token, marketed as a gateway to voting rights within a future decentralized finance (DeFi) protocol. Despite Trump’s high profile, the token’s launch has been nothing short of a flop. After nearly 24 hours of trading, only 848.63 million WLFI tokens—worth around $12.7 million—had been sold. This represents just 4.24% of the total 20 billion tokens available.

Number of WLFI tokens sold. Source: World Liberty Financial.


Several key issues contributed to the token’s poor performance, revealing a complex web of limitations and mishaps. Here are five reasons why Trump’s World Liberty Financial token flopped so badly on launch day.

1. Restricted Access for Investors
One of the most significant reasons for the sluggish sales of the WLFI token lies in the strict buying restrictions imposed on investors. Unlike most decentralized token offerings that are open to anyone with an internet connection, Trump’s token was limited to accredited U.S. investors or non-U.S. residents.

Accredited investors must meet high financial thresholds, such as earning over $200,000 annually or having a net worth exceeding $1 million. As a result, a vast majority of Trump’s supporters, who reside in the United States but do not meet these stringent requirements, were effectively barred from purchasing the token.

While crypto enthusiasts outside the U.S. could have sidestepped this requirement, they needed to provide proof of foreign residency, which added another hurdle to the purchasing process. These restrictions not only narrowed the pool of potential buyers but also alienated Trump’s core U.S. base, contributing significantly to the low token sales.

2. WLFI Is Not Transferable
Perhaps the most damaging factor for the WLFI token is its non-transferability. Unlike traditional cryptocurrencies, which can be traded freely on decentralized exchanges, the WLFI token is bound by strict terms that prevent it from being transferred between wallets. This means that accredited investors cannot sell the token to non-accredited ones, nor can non-U.S. buyers sell it to U.S. residents.

WLFI sale terms and conditions. Source: World Liberty Financial.


Moreover, investors have no means of liquidating their holdings for profit, as the token cannot be traded on secondary markets. Instead, holders must wait for the promised DeFi protocol, where they will gain voting rights on governance proposals. Without the possibility of immediate financial gain through trading, the token has little appeal to speculators or short-term investors. The inability to trade WLFI undermines one of the core benefits of holding a cryptocurrency, further dampening demand.

3. Website Crashes Hampered Sales
Technical failures further exacerbated the token's struggles. Despite the relatively low number of tokens sold, the World Liberty Financial website experienced several crashes during the launch. Many users reported encountering errors, such as pages not loading correctly or receiving messages that the website was down when attempting to make purchases.

Source: Wazz


While it remains unclear why the website could not handle the traffic, this technical issue likely discouraged potential buyers who, after several failed attempts, may have simply decided to keep their money.

This website failure may have also been a symptom of low expectations from the WLFI team, which appeared to underestimate the level of interest or the technological infrastructure required to handle token sales smoothly.

4. Skepticism and Perceptions of a Grift
Another issue plaguing the WLFI token is public skepticism surrounding the project. Some potential buyers view the token as nothing more than a grift or a petty scam. Critics have pointed out that while the token’s non-transferability is clearly stated in the fine print, many believe that the developers deliberately buried this information to lure in unsuspecting buyers.

This skepticism only deepened when Trump’s announcement of the token on X (formerly Twitter) garnered a “community note” warning potential investors that the token was locked and non-transferable. The note urged users to read the fine print, intensifying the perception that the project was designed to mislead buyers. This general mistrust contributed to the token’s underwhelming sales, as many were hesitant to invest in what they saw as a dubious venture.

5. Complicated Buying Process
Finally, the WLFI token’s sluggish sales can also be attributed to a cumbersome and confusing purchasing process. Potential investors were required to pass a Know Your Customer (KYC) check, which involved uploading sensitive personal information such as a passport or driver’s license. Some users expressed distrust toward Sumsub, the third-party company conducting the KYC checks, and were unwilling to share their documents.

Additionally, the complexities surrounding the definition of an accredited investor added another layer of confusion. Many would-be buyers were unsure whether they qualified as accredited investors, while others were uncertain about how to answer residency questions. For example, individuals who split their time between the U.S. and another country were unsure which option to select when verifying their eligibility.

This combination of security concerns, unclear qualifications, and general confusion over the buying process led many potential investors to abandon their attempts, further contributing to the token’s dismal sales.

In Summary
The launch of Donald Trump’s World Liberty Financial token has faced numerous obstacles, from restricted access to technical failures and widespread skepticism. The token’s inability to be traded, combined with a complicated purchasing process, only served to further alienate investors. Despite Trump’s continued influence in the U.S. crypto community, the WLFI token’s debut is a stark reminder that even high-profile figures cannot guarantee success in the volatile world of cryptocurrency. Whether the token will recover once its DeFi protocol is operational remains to be seen, but for now, it serves as a cautionary tale for token projects that fail to address both investor needs and technical demands.

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